China’s Huawei is encouraging its global suppliers to invest in India in order to build a mobile phone components ecosystem as the company aims to manufacture 90% of its phones in the country by the end of this year, Peter Zhai, president, Huawei India Consumer Business Group, said. “Since we have decided to develop the India market, I believe a lot of suppliers will be willing to support us and be willing to follow us to enter this market,” he added.
The Government of India’s Phased Manufacturing Program, which aims to boost the manufacture of phones in India, has targeted production of various components for three years—mechanics, die-cut parts, microphones and receivers, keypads and USB cables in 2017-18; printed circuit boards, camera modules and connectors in 2018-19; and display assemblies, touch panels, vibrator motors and ringers in 2019-20.
Huawei’s competitor in India, Xiaomi, said that if all its suppliers set up shop in India, investments worth over $2.5 billion will enter the country and create as many as 50,000 jobs. Xiaomi hosted over fifty suppliers, which manufacture components such as touch panels, camera modules and LCD and LED panels for it, on a three-day tour of the states of Uttar Pradesh and Andhra Pradesh to explore investment opportunities.
